(RIO1) Rio Tinto - Ratings and Ratios

Rio Tinto Group (XETRA: RIO1) is a globally diversified miner that extracts, processes, and markets a broad portfolio of mineral resources across four operating segments: Iron Ore, Aluminium, Copper, and Minerals.

**Iron Ore** – The segment runs large-scale open-pit mines and associated salt and gypsum operations in Western Australia. In FY 2024 the segment delivered ≈ 300 Mt of iron ore, contributing roughly ≈ 55 % of total group revenue, and benefitted from a 2023-24 average spot price of US $115/t, well above the 5-year median.

**Aluminium** – This business covers the full value chain from bauxite mining to alumina refining, primary smelting, and recycling. Production in FY 2024 was about ≈ 3.3 Mt of aluminium, with a net cash-flow margin of ≈ 12 % driven by strong demand in automotive lightweighting and renewable-energy infrastructure.

**Copper** – Rio Tinto extracts copper alongside gold, silver, molybdenum and other by-products, and conducts exploration to replenish reserves. The segment produced ≈ 1.7 Mt of copper in FY 2024, a 7 % increase YoY, while copper prices averaged US $9,200/t, reflecting tight supply and accelerating electrification trends.

**Minerals** – This diversified unit processes borates, titanium-dioxide feedstock, iron concentrate/pellets, and diamonds, and is actively developing battery-material projects such as lithium-hydroxide in Western Australia. The segment’s contribution to earnings is modest (≈ 5 % of total) but its growth potential is tied to the expanding EV and renewable-energy storage markets.

Rio Tinto’s asset base includes both open-pit and underground mines, integrated refineries, smelters, processing plants, and a dedicated logistics network of power, rail, and shipping facilities, giving it a high degree of operational control and cost efficiency.

Founded in 1873, the company is headquartered in London and trades under the GICS sub-industry “Diversified Metals & Mining.” As of the latest reporting, its market-cap is roughly US $150 bn, with a dividend yield of ≈ 5 % and a forward-looking capex plan of US $15 bn aimed at expanding copper and battery-material capacity.

Given the material impact of macro-level commodity cycles on Rio Tinto’s segments, a deeper dive into its segment-specific cash-flow forecasts and the sensitivity of its earnings to iron-ore and copper price swings is advisable; ValueRay’s granular analyst tools can help you model those scenarios more precisely.